CaliforniaInsurance business practices.
What it does
Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and generally regulates classes of insurance, including fire and residential property insurance. Existing regulations prescribe specified deadlines by which an insurer is required to, among other things, respond to a notice of claim, accept or deny a claim, in whole or in part, and, upon acceptance of a claim in whole or in part, tender payment or otherwise take action to perform its obligation, as specified.
More detail
This bill, with respect to a claim under a policy of residential property insurance, would codify specified provisions of the regulations prescribing the deadlines above.
Existing law specifies the measure of indemnity under an open fire insurance policy that requires payment of actual cash value or replacement cost. Under existing law, the measure of the actual cash value recovery is the amount it would cost the insured to repair, rebuild, or replace the thing lost or injured less a fair and reasonable deduction for physical depreciation based upon its condition at the time of the injury or the policy limit, whichever is less. If an open policy requires the insured to repair, rebuild, or replace the damaged property to collect the full replacement cost, under existing law the insurer is required to pay the actual cash value of the damaged property until the damaged property is repaired, rebuilt, or replaced, at which time the insurer is required to pay the difference between the actual cash value payment made and the full replacement cost reasonably paid to replace the damaged property.
If there is a total loss to the insured structure, this bill would require, except under specified circumstances, an insurer to pay the actual cash value associated with the primary structure and other insured structures within 30 calendar days from the date the property is determined to be a total loss. After this payment is made, and after the insurer has received adequate proof of loss and documentation reasonably sufficient to determine the amount payable, the bill would require an insurer to pay the undisputed amount of replacement cost associated with the primary structure and other insured structures, up to the limits in the policy, within 30 calendar days from the occurrence of a specified event.
This bill would require interest to accrue if payments are not made within 30 calendar days, as specified.
This bill would incorporate additional changes to Section 2051.5 of the Insurance Code proposed by SB 876 to be operative only if this bill and SB 876 are enacted and this bill is enacted last.
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Where it stands
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 27In Senate. Consideration of Governor's veto pending.Latest
- Sep 27Vetoed by the Governor Gavin Newsom.Major
- Sep 9Enrolled and presented to the Governor at 2 p.m.To Governor
- Aug 31Assembly amendments concurred in. (Ayes 37. Noes 0.) Ordered to engrossing and enrolling.Major
- Vote recorded SB 878 Pérez Senate Third Reading By Harabedian. Result: pass.Lower
- Vote recorded Unfinished Business SB878 Pérez et al. Concurrence. Result: pass.Upper
- Aug 31In Senate. Concurrence in Assembly amendments pending.
- Aug 31Read third time. Passed. (Ayes 70. Noes 0. Page 6996.) Ordered to the Senate.Passed Assembly
- Aug 21Ordered to third reading.Minor
- Aug 21Read third time and amended.Major
- Aug 21Assembly Rule 69(b)(1) suspended. (Ayes 55. Noes 17. Page 6296.)
- Aug 13Read second time. Ordered to third reading.Minor
- Vote recorded Do pass. Result: pass.Lower
- Aug 13From committee: Do pass. (Ayes 12. Noes 0.) (August 13).Minor
- Aug 13Assembly Rule 63 suspended.
- Aug 5August 5 set for first hearing. Placed on suspense file.
- Jun 17From committee: Do pass and re-refer to Com. on APPR. (Ayes 14. Noes 0.) (June 17). Re-referred to Com. on APPR.Minor
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Jun 10From committee with author's amendments. Read second time and amended. Re-referred to Com. on INS.Major
- Jun 1Referred to Com. on INS.Minor
- May 26In Assembly. Read first time. Held at Desk.Minor
- Vote recorded 3rd Reading SB878 Pérez et al. Result: pass.Upper
- May 26Read third time. Passed. (Ayes 29. Noes 6. Page 4443.) Ordered to the Assembly.Passed Senate
- May 14Read second time. Ordered to third reading.Minor
- Vote recorded Do pass. Result: pass.Upper
- May 14From committee: Do pass. (Ayes 5. Noes 2. Page 4255.) (May 14).Minor
- May 12Set for hearing May 14.
- May 11May 11 hearing: Placed on APPR. suspense file.
- Vote recorded Placed on suspense file. Result: pass.Upper
- May 4Set for hearing May 11.
- Apr 28Re-referred to Com. on APPR.Minor
- Apr 28Withdrawn from committee.Major
- Apr 27Re-referred to Com. on PUB. S.Minor
- Apr 27Withdrawn from committee.Major
- Apr 27Read second time and amended. Re-referred to Com. on APPR.Major
- Apr 23From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 4. Noes 2. Page 4011.) (April 22).Major
- Apr 22
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]. Result: pass.Upper
- Apr 10Set for hearing April 22.
- Apr 6From committee with author's amendments. Read second time and amended. Re-referred to Com. on INS.Major
- Mar 31April 8 hearing postponed by committee.
- Mar 27Set for hearing April 8.
- Feb 11Referred to Coms. on INS. and PUB. S.Minor
- Jan 7From printer. May be acted upon on or after February 6.
- Jan 6Introduced. Read first time. To Com. on RLS. for assignment. To print.Introduced